Real estate mediation

29 June 2017

Mediation aims to benefit borrowers, lenders, purchasers, sellers, consumers et cetera, in respect of loan, purchase, sale, or lease agreements and has the potential to remove a dispute from the high-cost litigation system to a more efficient, cost-effective mediation.

When these disputes arise their resolution is dependent on the nature of residential and commercial real estate transactions and limited legislative hurdles. As an aid, the writer gives an example of a mediation clause for readers to adapt to suit their client's needs.

Even if the parties do not resolve the dispute by mediation, the mere conducting of the mediation process will place the parties in a position to identify the real issues in dispute and the parties can always agree to approach a court or arbitrate on a ‘stated case basis’, which will limit costs, time and unnecessary delays such as postponements, non-allocation of magistrates or judges or the dreaded ‘sick note’.